Resident in Canada but work for Overseas Company

[One_Topsy]

Can anyone give guidance please.

In a situation where a resident works for an overseas company, will the resident pay tax to province along with federal tax, or will it be federal tax alone. I used payroll online deduction calculator of CRA: https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English
It gives option for "outside Canada" under the province. If i select that, there is no provincial tax calculated.

Thank

 

[zardoz]

Can anyone give guidance please.

In a situation where a resident works for an overseas company, will the resident pay tax to province along with federal tax, or will it be federal tax alone. I used payroll online deduction calculator of CRA: https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English
It gives option for "outside Canada" under the province. If i select that, there is no provincial tax calculated.

Thank

My belief is that it depends on where the employee resides, not where the employer is based. Therefore, if you live in Ontario, you pay Ontario provincial taxes, for example. I am open to correction by anyone who knows tax law better.

 

[One_Topsy]

Thanks zardoz.

The job is a work from home job, so the employee can live in any province really. The company doesn't have a branch in Canada. So for example, the resident could be in UK for 3 months, then go back to Canada for 3 months just to fulfil PR obligations.

I would appreciate further clarification

 

[zardoz]

Thanks zardoz.

The job is a work from home job, so the employee can live in any province really. The company doesn't have a branch in Canada. So for example, the resident could be in UK for 3 months, then go back to Canada for 3 months just to fulfil PR obligations.

I would appreciate further clarification

You need to engage a specialist tax accountant I think.

 

[One_Topsy]

You need to engage a specialist tax accountant I think.

THanks, your suggestions are appreciated very much!

 

[etienbjel]

Bit late but...

Yes definitely hire a tax accountant because you are considered the same as a business owner and so are eligible for many more tax deductions. My brother in law was in the same boat. Also remember that tax advice fees are also tax deductible ;D

 

[One_Topsy]

THank you!